Pitfalls of overreaching

When large firms decide to have broad offerings they need to ensure they have the resources to support it. If not, they could face the following pitfalls:

Diluting management attention

Making regulatory compliance more complex

Creating complex technology implementations and upgrades

Introducing potential for client and channel conflicts

Ask clients what they want

Decide what products to focus on offering by asking your clients.

When asked to identify the selection criteria their clients consider in choosing an investment product, the vast majority of wealth managers report that the risk/return profile of a product is key.

About half would say an advisor's recommendation is important. By comparison, fees are cited by just one in three.

What are the two or three most important criteria for your clients in selecting an investment product?

Source: Greenwich Associates Note: Chart based on 37 respondents.

Review your products

You need to review your products because the risk/return profile of a product is so important. Also, if you are seeking to expand you investment product offerings and introduce more third-party product, you need to know what's working and what isn't.

Does your firm have an annual product review?

Segment

Base

Yes

No

HNW*

(22)

95%

5%

MM*

(16)

69%

31%

*HNW – high-net-worth; MM – mass-market

Source: Greenwich Associates Note: Chart based on 38 respondents.

On a 5-point scale, with 5 being "very effective" and 1 being "not effective at all," how effective is the annual productreview process at:

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.